Clessidra looks to fashion

Milan-based private equity firm Clessidra Capital Partners has bought a minority stake in Italian designer Roberto Cavalli’s fashion house.

In April 2008 Cavalli put his business up for sale, and was hoping for offers in the region of €2bn, although the sale collapsed as his advisers Merrill Lynch revealed they were aiming for €1.2bn.

In response to the deal Cavalli said to Italian news source Il Sole 24 Ore: “I am close to signing a preliminary agreement for the sale of a minority stake to the Clessidra fund. I had to think a lot in these last few weeks and I believe that it is the best way to ride the recovery after this moment of economic crisis.”

The firm had offered a price equivalent to 10-11 times the house’s earnings before interest, tax, depreciation and amortisation, while Cavali wanted 16 times.

Clessidra Capital Partners is the buyout fund launched by former Morgan Stanley chief and Fininvest chief executive Claudio Sposito.